McDonald''s (MCD) Global Comps Fell 0.3% in Feb., Wider than Expected
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McDonald''s Corporation (NYSE: MCD) announced that global comparable sales decreased 0.3% in February. (Estimates called for a 0.1 percent drop.) Performance by segment was as follows:
-- U.S. down 1.4%
-- Europe up 0.6%
-- Asia/Pacific, Middle East and Africa (APMEA) down 2.6%
"McDonald's global growth priorities - optimizing our menu, modernizing the customer experience and broadening accessibility to Brand McDonald's - are the foundation of our customer-centric approach to building our business for the long term," said McDonald's President and Chief Executive Officer Don Thompson. "We are intent on improving our business performance by thoughtfully evolving our approach to ensure that we are delivering the most compelling value, service and convenience to each of the approximately 70 million customers who choose McDonald's each day."
In February, U.S. comparable sales decreased 1.4% amid challenging industry dynamics and severe winter weather. Across the segment, McDonald's priority remains building guest traffic through improved restaurant operations and customer service, relevant menu news, and strong consistent value offerings to regain momentum.
Europe's comparable sales rose 0.6% in February as a result of continued strong performance in the U.K. and positive results in France largely offset by ongoing weakness in Germany. Local menu options and expanded convenience through breakfast and extended hours continue to support the segment's performance.
In APMEA, February comparable sales decreased 2.6% primarily due to weakness in Japan and, to a lesser extent, a shift in timing of Chinese New Year and negative results in Australia. To strengthen performance, APMEA is pursuing customer-focused initiatives to deliver menu variety, increased convenience and branded affordability across the segment.
"We are diligently focused on strengthening our performance, however our relatively flat year-to-date global comparable sales will pressure margins in the first quarter," said McDonald's Chief Financial Officer Pete Bensen. "Looking ahead, we believe that we are taking the right actions to more clearly align with our customers' needs and build momentum to drive long-term profitable growth."
Systemwide sales for the month decreased 0.6%, or increased 2.2% in constant currencies.
-- U.S. down 1.4%
-- Europe up 0.6%
-- Asia/Pacific, Middle East and Africa (APMEA) down 2.6%
"McDonald's global growth priorities - optimizing our menu, modernizing the customer experience and broadening accessibility to Brand McDonald's - are the foundation of our customer-centric approach to building our business for the long term," said McDonald's President and Chief Executive Officer Don Thompson. "We are intent on improving our business performance by thoughtfully evolving our approach to ensure that we are delivering the most compelling value, service and convenience to each of the approximately 70 million customers who choose McDonald's each day."
In February, U.S. comparable sales decreased 1.4% amid challenging industry dynamics and severe winter weather. Across the segment, McDonald's priority remains building guest traffic through improved restaurant operations and customer service, relevant menu news, and strong consistent value offerings to regain momentum.
Europe's comparable sales rose 0.6% in February as a result of continued strong performance in the U.K. and positive results in France largely offset by ongoing weakness in Germany. Local menu options and expanded convenience through breakfast and extended hours continue to support the segment's performance.
In APMEA, February comparable sales decreased 2.6% primarily due to weakness in Japan and, to a lesser extent, a shift in timing of Chinese New Year and negative results in Australia. To strengthen performance, APMEA is pursuing customer-focused initiatives to deliver menu variety, increased convenience and branded affordability across the segment.
"We are diligently focused on strengthening our performance, however our relatively flat year-to-date global comparable sales will pressure margins in the first quarter," said McDonald's Chief Financial Officer Pete Bensen. "Looking ahead, we believe that we are taking the right actions to more clearly align with our customers' needs and build momentum to drive long-term profitable growth."
Systemwide sales for the month decreased 0.6%, or increased 2.2% in constant currencies.
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